20 Signs There’s An Affordability Crisis In America

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U.S. households are confronting a deepening affordability squeeze that is reshaping how they shop, dine and finance daily life, creating new political risks for President Donald Trump as he prepares to travel to Pennsylvania to discuss economic policy.

Key Facts

What Are The 20 Signs There’s An Affordability Crisis In America?

1. In 2025, food price increases are outpacing their 20 year average, as the Department of Agriculture expects grocery prices to rise 2.4%, restaurant meals to climb 3.9% and overall food costs to increase 3%.
2. The price of major food staples like eggs, sugar and meat—especially beef—all increased in 2025 and are expected to continue rising in the months ahead, according to USDA.
3. Fast casual stocks have fallen sharply year to date, including Chipotle (-44.7%), Cava (-52.5%), Sweetgreen (-79.9%) and Wingstop (-14.7%), a shift Chipotle CEO Jack Boatwright attributes to a strain on diners’ budgets.
4. Lower-priced and value-driven fast food chains are gaining, with Restaurant Brands International—parent company to Burger King, Tim Hortons, Popeyes and Firehouse Subs—up 9.2%, McDonald’s up 6.5% and Yum Brands up 6% year to date.
5. Households are devoting a larger share of their income to housing. In 2022, a typical household spent about 23% of earnings on a median priced home. Yet in 2025, that burden increased to 25% and has peaked at over 26%, according to The National Association of Realtors.
6. Home prices have climbed. The median single family home rose from $392,800 in 2022 to an average of $419,122 in 2025, per the National Association of Realtors.
7. Younger Americans are falling further behind. Last month, a housing study showed that people born in the 1990s are projected to retire with homeownership rates 9.6 percentage points lower than the previous generation. The study also shows that when buyers conclude a home is out of reach, they tend to spend more, take on riskier investments and gradually work less over time.
8. Electricity and utility gas bills rose 6.4% year over year nationwide in September, according to the Bureau of Labor Statistics.
9. Since February 2020, electricity prices have surged nearly 40%, per Federal Reserve Economic Data.
10. Employer-sponsored family health insurance is costing an average of $26,993 this year, up 6% from last year, according to the Kaiser Family Foundation (KFF), a health policy research organization.
11. In the past five years, KFF reports family premiums have increased by 26%.
12. The Affordable Care Act market shows a similar upward trend this year. Of 312 insurers, only four proposed premium reductions, while 125 requested increases of 20% or more and seven put forward hikes of at least 50%, according to Health System Tracker cited by John Hopkins’ School of Public Health.
13. IBISWorld data cited by Congress shows that healthcare accounts for 24.7% of debt collection revenue in 2025.
14. Discount retailers, such as Dollar General and Dollar Tree, have also become a barometer of this strain, per the Financial Times. Dollar General shares jumped 8% on Thursday after a strong third quarter report that included a $10.6 billion increase in net sales. The stock is up 62.9% year to date and hit a yearly high of $135.08 on Friday. Dollar Tree, which reported a 4.2% increase in same store net sales and noted that 85% of its quarterly transactions were priced at $2 or less, has posted a 59.1% year to date stock gain.
15. In retail, the National Retail Federation’s CEO, Matthew Shay, said consumers this season are fixated on value and aggressive promotions.
16. Target is taking note. The retail juggernaut has responded to consumer sentiment by cutting prices on 3,000 items, which company leaders told Fox Business is to strengthen its value for the holiday season and lift its weakening profit outlook.
17. While the National Retail Federation still projects total holiday spending will reach $1 trillion, underlying data suggests a substantial amount of this spending comes from “buy now, pay later” platforms, an alternative payment method that lets consumers make purchases without paying the full cost up front. On Cyber Monday, buy now, pay later transactions exceeded $1 billion, up 4% from last year, according to Adobe Analytics.
18. Stockholm-based buy now, pay later company Klarna recorded a 45% year over year jump in November, driven by U.S. Black Friday volume.
19. Student loan debt has hit a record $1.81 trillion, according to the Education Data Initiative.
20. More borrowers are falling behind. As of the second quarter of 2025, about 11.3% of federal student loan debt is past due, per the Education Data Initiative.

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